2 insurance companies request rate hikes as Floridians feel the pinch

HILLSBOROUGH COUNTY, FLORIDA – The cost of living in paradise continues to skyrocket. Many Floridians complain that their home insurance premiums are breaking their budget, and now, two insurance companies are demanding big rate increases.

Castle Key Insurance and Amica Mutual are demanding an increase in insurance premiums of more than 50%. The Florida Office of Insurance Regulation will consider the request this week.

Mark Friedlander of the Insurance Information Institute breaks down the trend.

“We haven't seen these kinds of rate increases because the trend has been lower rate increases,” Friedlander said.

He said the target for growth is condos and second homes. He also said homes are likely to suffer more severe weather damage, along with higher costs to replace or repair them.

Many Florida homeowners say their premiums are already too high.

“My renewal premium was four times the premium, and I went back to Citizens, and now I'm paying twice as much,” said homeowner Don Landes.

She said she was paying about $4,000. Insurance experts say that the premium increase this year is less than last year. Friedlander points out that this latest request doesn't mean more requests are coming.

“I think these two particular rate changes are very niche specific, and the bottom line is don't think that this is a trend that's starting. It's not necessarily,” Friedlander said.

Florida's Office of Insurance Regulation will hold hearings to consider rate increase requests.